Alternative Investments
ALTERNATIVE INVESTMENTS Research paper
Zagreb, svibanj 2013.
Table of Contents
1. INTRODUCTION 3 2. ART INVESTMENT 3 3. OLD - TIMERS 6 4. BASEBALL MEMORABILIA 8 5. WINE 11 6. CONCLUSION 13
INTRODUCTION |
Alternative investments have become popular because many people and investors have been looking into safer ways to invest their money. But there is a question: What is actually an alternative investment? An alternative investment could any investment other than the three traditional asset classes: stocks, bonds and cash. Another very important question is: Why do people invest their money in alternative investment? Answer is very simple, they do so to vary or diversify their investment portfolios. While deciding whether to invest in the traditional or the alternative way investors must weigh up all benefits and downsides of both investment types. Almost all alternative investments are less liquid than traditional ones, as well as traded on the markets that are usually not transparent enough. This paper covers four types of alternative investments – art, old-timers, baseball memorabilia and wine. Every investment is analyzed in a way that brings potentail investor all relevant information for making his final decision.
ART INVESTMENT |
Not so long time ago investing in art was thought of as a passion and only rare individuals buying and selling artistic items were considered as investors in arts, trying to make profit on these actions. Recently, art has been observed as a potential alternative investment. The main reason why people buy fine art, apart from the pleasure of having works of art around, is diversification of their portfolio. According to the J.P.Morgan website only 10% of high net worth individuals (HNWI) own fine art pieces purely as a financial investment.
Experts agree that there are certain advantages as well as disadvantages of art
Zagreb, svibanj 2013.
Table of Contents
1. INTRODUCTION 3 2. ART INVESTMENT 3 3. OLD - TIMERS 6 4. BASEBALL MEMORABILIA 8 5. WINE 11 6. CONCLUSION 13
INTRODUCTION |
Alternative investments have become popular because many people and investors have been looking into safer ways to invest their money. But there is a question: What is actually an alternative investment? An alternative investment could any investment other than the three traditional asset classes: stocks, bonds and cash. Another very important question is: Why do people invest their money in alternative investment? Answer is very simple, they do so to vary or diversify their investment portfolios. While deciding whether to invest in the traditional or the alternative way investors must weigh up all benefits and downsides of both investment types. Almost all alternative investments are less liquid than traditional ones, as well as traded on the markets that are usually not transparent enough. This paper covers four types of alternative investments – art, old-timers, baseball memorabilia and wine. Every investment is analyzed in a way that brings potentail investor all relevant information for making his final decision.
ART INVESTMENT |
Not so long time ago investing in art was thought of as a passion and only rare individuals buying and selling artistic items were considered as investors in arts, trying to make profit on these actions. Recently, art has been observed as a potential alternative investment. The main reason why people buy fine art, apart from the pleasure of having works of art around, is diversification of their portfolio. According to the J.P.Morgan website only 10% of high net worth individuals (HNWI) own fine art pieces purely as a financial investment.
Experts agree that there are certain advantages as well as disadvantages of art